By Jennifer Chiou
New York, Feb. 24 - AED Oil Ltd. announced that it has entered into a subscription agreement under which a subsidiary of Asia Resources Fund Ltd. will subscribe for up to $30 million of new four-year unsecured convertible notes.
The initial tranche will be for $20 million of notes, and AED may issue a further $10 million of notes within three months of the initial issue, provided that certain conditions are met.
The notes will bear interest at 6% per year, payable semiannually.
They are nonconvertible for the first year. Further, shareholders must approve the conversion right. AED said it will seek approval in the first half of this year.
The conversion price will be at a 15% premium to the volume-weighted average price prior to the issue of the notes.
The Asia Resources subsidiary will have the right to nominate one director to AED's board.
Proceeds will go towards expansion and funding of the company's cash reserves.
The issuer is a Melbourne, Australia-based oil company.
| Issuer: | AED Oil Ltd.
|
| Issue: | Unsecured convertible notes
|
| Investor: | Asia Resources Fund Ltd. subsidiary
|
| Amount: | Up to $20 million
|
| Maturity: | Four years
|
| Coupon: | 6%, payable semiannually
|
| Initial conversion premium: | 15%
|
| Announcement date: | Feb. 24
|
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